Slinging Taunts in the Trade Game: Will the US-China Trade War Escalate Again?
Trade Dispute Endangers Agreement - Trump's Clash with China Over Trade Relations - Trump and China locked in a dispute
Let's dive into the latest chapter of the on-going trade war between the world's two largest economies - the U.S. and China. Both sides have been hurling accusations at each other after U.S. President Donald Trump accused China of not holding up their end of the Geneva Agreement talks, which took place roughly two weeks ago. In the heat of the moment, Beijing has fired back with some stinging criticism of the U.S.
The U.S. allegedly "continues to impose arbitrary restrictions" against China according to the Chinese Ministry of Commerce. This includes measures like tightening the screws on AI chip sales and software distribution to China, as well as the announcement of the revocation of visas for Chinese students studying in the U.S.
Instead of critically examining their own actions, the U.S. administration is merely pointing fingers at China, claiming they are defying the consensus, added the Ministry.
Trump's Tirade
The U.S. and China had agreed in mid-May during the ongoing trade dispute to momentarily slash their reciprocal tariffs. A joint statement from both economic giants hinted at this reduction over a 90-day period. The agreement would see U.S. tariffs on Chinese imports drop from 145 to 30 percent, while China's tariffs on U.S. goods would lessen from 125 to 10 percent.
At the time, President Trump heralded an opening of China as his primary objective. He also declared that China had consented to it. However, as of late, the U.S. administrations tone towards China has become more brutal. "Lo and behold, China has totally disregarded the agreement we made," Trump asserted on his Truth Social platform last Friday. He did not specify the particular violation of the agreement.
Direct Dialogue?
According to media reports, other U.S. government officials have criticized China for adhering to the tariff reductions but keeping trade hindrances like rare earth export limitations in place.
Later that day, Trump only stated that China had "violated a significant part of the agreement" during a press conference in the Oval Office. He remained optimistic, however, that he would engage in some talks with Chinese President Xi Jinping - "and hopefully we'll find a resolution." There was no confirmation from Beijing regarding such a conversation.
- China
- Donald Trump
- U.S.
- Trade Dispute
- Beijing
- U.S. President
- Trade War
- Geneva
- Software
- AI
- Rare Earth Elements
- Visas
Enrichment Data:
The recent joint statement from the U.S.-China Economic and Trade Meeting in Geneva outlines several significant action points:
- Tariff Adjustments: China agreed to modify its tariffs on U.S. goods. This includes suspending 24 percentage points of the additional ad valorem rate for 90 days, while keeping a 10% rate. Additionally, China will eliminate modified tariffs imposed by certain announcements from its Customs Tariff Commission.
- Non-Tariff Countermeasures: China will abandon or stop non-tariff countermeasures against the U.S. that were imposed since April 2, 2022.
- Future Discussions: Both countries will establish a system for ongoing discussions on economic and trade relations. These talks will be represented by significant officials from both sides, including He Lifeng from China and Scott Bessent and Jamieson Greer from the U.S.
- It is crucial for EC countries to closely monitor the ongoing US-China trade war, as its escalation could have significant implications for global employment policy.
- As the US-China trade war continues, the politics surrounding war-and-conflicts and general news take center stage, making employment policy in EC countries increasingly challenging.
